MKG Final Review
GNI income measures can give the impression that people in less-developed nations have less income than they really do.
false --- exp: Using GDP income measures can give the impression that people in less-developed countries have more income than they really do.
As part of its plans for long-term success, a company that manufactures frozen dinners focuses specifically on making a profit while using sustainably farmed ingredients and compostable packaging that both employees and customers can feel good about. Which of the following best describes the guidelines this company is using to measure its long-term success?
A Triple bottom line --- EXP: This company is using a triple bottom line, which means looking at the firm's economic, social, and environmental outcomes, to measure its long-term success.
Which of the following statements best explains the "marketing concept"?
All of a firm's activities and resources should be focused on fulfilling the needs of its customers while making a profit. ---- EXP: The marketing concept means that an organization aims all its efforts at satisfying its customers—at a profit. The marketing concept is not a new idea—it has been around for a long time. Nevertheless, some managers show little interest in customers' needs.
Why can't marketing managers be satisfied just planning present activities?
All of these are reasons that marketing managers can't be satisfied just planning present activities. --- Explanation Marketing managers are not satisfied just planning present activities, since markets are usually dynamic and consumers' needs, competition, and the environment keep changing.
"Product" is concerned with
All of these might be involved with "Product." --- Products include physical goods and/or services and product-related decisions include branding, warranties, and packaging. Developing the right new product is also included in "Product."
The current U.S. population is largest in which of the following states?
California
_______ means moving into totally different lines of business, perhaps entirely unfamiliar products, markets, or even levels in the production-marketing system.
Diversification Explanation: Diversification means moving into totally different lines of business, perhaps entirely unfamiliar products, markets, or even levels in the production-marketing system.
A firm lists its products on Amazon.com, enabling customers to make their purchases online. This is an example of
E-commerce --- EXP: E-commerce is the use of information technology, including search engines and online retailers, to facilitate exchange
A newspaper article with which of the following headlines would be LEAST likely to involve the political environment? Multiple Choice
Egg Sales Fall as Consumers Switch to Low Cholesterol Diets --- Explanation "Egg Sales Fall as Consumers Switch to Low Cholesterol Diets" would be LEAST likely to involve the political environment. It would instead involve the cultural and social environment.
Start of Ch.2 Controlling the marketing plan is the first step of the marketing management process.
FALSE --- Exp: Controlling marketing plans is the final step of the marketing management process. It involves measuring results and evaluating progress of plans after they have been devised and implemented.
A target market consists of a group of consumers who are usually
FALSE --- Explanation A target market consists of a fairly homogeneous group of customers.
The letters in "S.W.O.T." analysis are an abbreviation for the first letters of the words "special weapons or tactics."
FALSE --- Explanation The name S.W.O.T. is simply an abbreviation for the first letters in the words strengths, weaknesses, opportunities, and threats.
In 1980, the median age of the U.S. population was 37.
FALSE --- Explanation In 1980, the median age of the U.S. population was 30, but by 2010 the median age had risen to 37.
When developing a marketing strategy, marketing managers should focus on the generalizations about the different generations (Baby Boomers, Gen X, Millennials, etc.)
FALSE --- Explanation Marketing managers should be cautious about using generational generalizations as anything more than a starting point. When developing a strategy, marketing managers should focus on a more specific target.
Because the Consumer Product Safety Commission has no power to force a product off the market, safety is not a very important consideration in product design.
FALSE --- Explanation The commission has the power to force a product off the market or require expensive recalls to correct problems, so it is obvious that safety must be considered in product design.
Which of the following statements about population density and population growth is NOT correct?
In Ethiopia, more than 85 percent of people live in urban areas. --- Explanation In Ethiopia, 25 percent or less of the population lives in urban areas.
Which of the following statements is true of marketing-oriented firms?
In a marketing-oriented firm, every department's activities are guided by what customers need and what the firm can deliver at a profit. --- Explanation A marketing orientation means trying to carry out the marketing concept. Instead of just trying to get customers to buy what the firm has produced, a marketing-oriented firm tries to offer customers what they need while still making a profit. The total system's effort is guided by what customers want, instead of what each department would like to do. The marketing concept provides a guiding focus that all departments adopt. It should be the philosophy of the whole organization, not just an idea that applies to the marketing department.
Which of the following is true of a market-directed economy?
Macro-level decisions for the whole economy are based on the individual decisions of the economy's many producers and consumers. --- EXP: In a market-directed economy, the economy's macro-level decisions are determined by the individual decisions of the economy's producers and consumers.
Which of the following was likely an effect of the unification of European markets?
Many of the taxes and rules that had limited trade among member countries of the European Union were eliminated. --- Explanation Twenty years ago, each country in Europe had its own unique trade rules and regulation,s but now almost 30 countries of the European Union (EU) are reducing conflicting laws, taxes, and other obstacles to trade within Europe.
_____ means trying to increase sales by selling present products in new markets.
Market development --- EXP: Market development means trying to increase sales by selling present products in new markets. This may involve searching for new uses for a product.
Which of the following statements about marketing is true?
Marketing only occurs when two or more parties are willing to exchange one thing for another thing. --- EXP: Marketing focuses on facilitating exchanges. In fact, marketing does not occur unless two or more parties are willing to exchange something for something else. For example, in a pure subsistence economy—when each family unit produces everything it consumes—there is no need to exchange goods and services and no marketing is involved.
Which of the following best describes marketing?
Marketing should guide production, accounting, and financial activities.
Which of the following is a difference between business firms and nonprofit firms with regard to the marketing concept?
Nonprofit organizations' key measures of long-term success differ from those of other business firms. --- EXP: As with a business, a nonprofit must take in as much money as it spends or it will not survive. However, a nonprofit organization does not measure "profit" in the same way as a firm. Moreover, its key measures of long-term success are different.
_______ is direct spoken communication between sellers and potential customers.
Personal selling --- EXP: Personal selling involves direct spoken communication between sellers and potential customers. It may happen face-to-face, over the telephone, or even via a videoconference over the Internet.
"Place" is concerned with
Place is concerned with decisions involving channel type, market exposure, kinds of intermediaries, kinds and locations of stores, how to handle transporting and storing, service levels, etc. =
A firm's marketing mix decision areas do NOT include
Profit --- EXP: The different variables of the marketing mix are Product, Place, Promotion, and Price.
The ________ area of the marketing mix includes decisions related to telling the target market or others in the channel of distribution about the "right" product.
Promotion --- Promotion is that element of the marketing mix that is concerned with telling the target market or others in the channel of distribution about the "right" product.
Personal selling lets the salesperson adapt the firm's marketing mix to a specific customer. This is an aspect of which marketing mix variable?
Promotion --- EXP: Personal selling is part of Promotion.
Which of the following laws focuses on price discrimination on goods of "like grade and quality" without cost justification?
Robinson-Patman Act --- exp: The Robinson-Patman Act prohibits "fake" advertising allowances or discrimination in help offered and also prohibits price discrimination on goods of "like grade and quality" without cost justification.
Which of the following is not a reason why a restaurant may have low customer value?
The cost of the dining experience is less than its perceived value. -- Explanation Customer value is the difference between the benefits a customer sees from a market offering and the costs of obtaining those benefits. In a restaurant setting, perceived benefits include food quality, service, and ambience. Costs of dining include prices, inconvenience of travel, and wait times. High customer value happens when the benefits of the dining experience are high and the various costs are low.
Compared to some countries in Latin America, the rate of inflation in the U.S. is low.
True Explanation In some Latin American countries, inflation has exceeded 400 percent a year in recent years. In contrast, recent U.S. levels, 3 to 20 percent, seem low.
Which of the following would probably NOT be in a proposed marketing plan?
a statement of how frequently the design of the website will be changed --- exp: An ideal marketing plan should answer the following questions: (1) what marketing mix will be offered, to whom and for how long; (2) what company resources will be needed at what rate; and (3) what results are expected. "How frequently the design of the website is changed" does not fall under one of these three questions.
Going global has become easier than ever for marketers, due to
advances in e-commerce, transportation, and communication. --- EXP: Advances in e-commerce, transportation, and communications are making it easier and cheaper to reach international customers. With a website and e-mail, even the smallest firm can provide international customers with a great deal of information—and easy ways to order—at very little expense.
Advertising is
any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor. Explanation Advertising refers to any paid form of nonpersonal presentation of ideas, goods, or services by an identified sponsor.
Firms that facilitate or provide one or more of the marketing functions other than buying are known as
collaborators --- Marketing specialists that facilitate or provide one or more of the marketing functions other than buying are known as collaborators. These collaborators include advertising agencies, marketing research firms, independent product-testing laboratories, Internet service providers, public warehouses, and so on.
CH.3 American economic and legislative thinking is based on the idea that
competition among many small firms helps the economy --- Explanation American economic and legislative thinking is based on the idea that competition among many small firms helps the economy.
Which of the following terms can be defined as the extent to which a firm fulfills a customer's needs, desires, and expectations?
customer satisfaction --- Explanation: Customer satisfaction is the extent to which a firm fulfills a customer's needs, desires, and expectations. Marketing plays an essential role in providing consumers with need-satisfying goods and services and, more generally, in creating customer satisfaction.
the objectives of a firm should direct the operation of the marketing department but aren't important to the rest of the business. Group starts True or False
false Explanation Firms need a hierarchy of objectives, moving from company objectives to marketing department objectives. Firms also need objectives for each of the Four Ps.
The direct market environment
includes customers, the company, and competitors
Gross national income (GNI)
is a measure similar to GDP, but it does not include income earned by foreigners who own resources in that nation.
Gross Domestic Product (GDP)
is a widely used measure of income for different countries.
Macro-marketing
is concerned with the flow of need-satisfying goods and services from producer to consumer. --- EXP: Macro-marketing is a social process that directs an economy's flow of goods and services from producers to consumers in a way that effectively matches supply and demand and accomplishes the objectives of society. With macro-marketing, we are still concerned with the flow of need-satisfying goods and services from producer to consumer. However, the emphasis with macro-marketing is not on the activities of individual organizations but is, instead, on how the whole marketing system works. This includes looking at how marketing affects society and vice versa.
Which of the following activities is part of the production process?
making goods or performing services --- Explanation Production refers to the process of actually making goods or performing services. Marketing, on the other hand, provides needed direction for production and helps make sure that the right goods and services are produced in the necessary amounts, and that they find their way to consumers.
The Wall Street Journal has been trying to attract new customers by promoting its newspaper for student use in business courses. This is an example of
market development. --- Explanation Market development means trying to increase sales by selling present products in new markets. This may involve searching for new uses for a product.
Tropicana is trying to get its customers to drink orange juice more often with ads that say, "It's not just for breakfast anymore." What type of opportunity is the company pursuing?
market penetration --- EXP: Market penetration means trying to increase sales of a firm's present products in its present markets, usually through an aggressive marketing mix.
What sets the tone and direction for the whole company?
marketing plan --- Explanation Although marketing strategies are not whole-company plans, company plans should be market-oriented. The marketing plan often sets the tone and direction for the whole company.
With regard to the universal functions of marketing, the transporting function involves
moving goods from one place to another.
"Nationalism" is an issue in the ________ environment.
political
In a command economy,
producers have little choice about what goods and services to produce.
When a firm manufactures a product and is uncertain about whether customers will want to buy its products, that firm is experiencing the ______ function of marketing.
risk-taking --- EXP: The universal functions of marketing are buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information. The risk-taking function involves firms dealing with the uncertainties of the marketing process.
Which of the following represents the basic goal of the marketing concept?
satisfying customers at a profit --- EXP: The marketing concept means that an organization aims all its efforts at satisfying its customers at a profit. The marketing concept is not a new idea—it has been around for a long time. Nevertheless, some managers show little interest in customers' needs.
In the context of the universal functions of marketing, the _____ function of marketing involves holding goods until customers need them.
storing --- EXP: The universal functions of marketing are buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information. The storing function involves holding goods until customers need them.
Government planning in a command economy is least likely to work well when
the economy is complex. --- Explanation Government planning in a command economy may work fairly well as long as an economy is simple and the variety of goods and services is small. It may even be necessary under certain conditions—during wartime, drought, or political instability, for example. However, as economies become increasingly complex, government planning becomes more difficult and tends to break down.
The text's Toddler University example shows that
the needs of a target market determine the nature of the appropriate marketing mix. Explanation In order to serve the "Attentive Parents" target market, the owner of Toddler University came up with an appropriate marketing mix that met this target market's needs. It did this by combining "fit and function with fun and fashion."
Which of the following functions of marketing involves sorting products according to their size and quality, helping to reduce their need for inspection, and sampling?
the standardization and grading function --- EXP: The universal functions of marketing are buying, selling, transporting, storing, standardization and grading, financing, risk taking, and market information. They must be performed in all macro-marketing systems. The standardization and grading function involves sorting products according to size and quality. This makes buying and selling easier because it reduces the need for inspection and sampling.
Businesses and individual managers are subject to both criminal and civil laws.
true --- Explanation Businesses and individual managers are subject to both criminal and civil laws.
Generation Z is described as "digital natives."
true --- Explanation People of the Generation Z group are part of a more ethnically diverse United States than their parents and appear to be more accepting of different cultures, races, and religions.
The Clayton Act focuses on practices that may substantially lessen competition, such as tying contracts, exclusive dealing contracts, and price discrimination by manufacturers.
true --- the Clayton Act focuses on practices that may substantially lessen competition, such as tying contracts, exclusive dealing contracts, and price discrimination by manufacturers.
Which of the following can a firm do to be more sustainable?
use ink-free recycled paperboard for making boxes --- Explanation Many organizations now screen opportunities on sustainability—the idea that it's important to meet present needs without compromising the ability of future generations to meet their needs. Puma reinvented the shoebox to be more sustainable. Instead of using lightweight or recycled materials in its shoebox, Puma used ink-free recycled paperboard and a reusable polypropylene bag.
"A firm is falling behind in research and development." With which element of the S.W.O.T. analysis tool does this statement fit?
weaknesses --- EXP: A S.W.O.T. analysis identifies and lists the firm's strengths, weaknesses, opportunities, and threats. Firms must quickly remedy the situation of lagging behind in one or more departments, which is a potential weakness.